Why Array Biopharma Inc. Shares (Briefly) Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Array Biopharma  (NASDAQ: ARRY  ) opened 10% higher this morning but have since settled into a modest 2% gain as investors digest the small biotech's latest earnings report. The stock has had difficulty holding onto its gains as the day progresses.

So what: Array reported revenue of $14.1 million and a loss of $0.13 per share for its fiscal second quarter. While the top line plunged 23% year over year, it was still better than the $13.5 million Wall Street consensus -- Array's $0.13 loss was also three cents better than the $0.16 loss analysts expected. The company wound up spending much less on R&D ($9.5 million vs. $13.9 million last year), but this was more than offset by the cost of its partnered programs, which rose from $7.9 million last year to $13.1 million in the latest quarter.

Now what: Expectations were abysmally low for Array this quarter, but even its modest beat represents a big year-over-year drop on both top and bottom lines. The company has yet to convince investors that its trial-phase drugs are going to be blockbusters, as shares barely bested index gains over the past year, despite a tremendous amount of volatility over that time. Earnings for development-stage biotechs don't really offer investors much guidance, at any rate, so it wouldn't be surprising if the stock finishes flat today.

Want more news and updates? Add Array Biopharma to your Watchlist now.

Still looking for a biotech with room to run?
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In the Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2822848, ~/Articles/ArticleHandler.aspx, 11/22/2014 9:17:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement